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Financial Advantage, Outsourcing and FDI under Wage Uncertainty
Choi, Jai Young; Choi, E Kwan - Department of Economics, Iowa State University - 2013
This paper investigates the role of infrastructure aid to developing countries in a 3x2 model with two traded goods and a nontraded good, with the focus of analysis placed on the effects on real national income and the Dutch disease effect.  It is shown that for a recipient country,...
Persistent link: https://www.econbiz.de/10011070808
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Financial Advantage, Outsourcing and FDI Under Wage Uncertainity
Choi, E. Kwan; Choi, Jai-Young - Department of Economics, Iowa State University - 2013
This paper investigates outsourcing and foreign direct investment (FDI) decisions in North–South trade under … wages. If the expected outsourcing cost is lower than the in-house production cost, some outsourcing to a Southern firm is … optimal. However, outsourcing to an FDI firm is superior to outsourcing to a Southern firm as well as in-house production …
Persistent link: https://www.econbiz.de/10011143822